Firm sees positives in market
Profits rise at Muir in tough conditions
Muir Group, the Fife-based contractor, housebuilder and property developer, saw profits slip despite a sharp rise in turnover in “difficult trading conditions”.
Annual income rose 39% from £53.7 million to £74.7m as activity increased in contracting and private housing.
Muir Construction revenues increased to just under £40m, which was £15m higher on last year. Construction returned a profit of £400,000 before tax, compared to a £950,000 loss last year.
Housing revenues rose by £5m to just under £30m. Average house prices were £221,000, compared to £195,000 in 2015/2016, with additional house sales taking the total number of properties sold to 137.
Timber Systems had another busy year as turnover increased to £4.7m from £3.5m previously. Margins were down slightly and overheads higher to drive the increased activity with profits circa £200,000. The company said prospects for the current year look promising. Leisure revenues continued flat at £1.6m
Development activity halved in the year, with revenues of £4.2m against £8.6m last year. Property Development for the current year will depend on timing of transactions and market confidence, it said.
John Muir, chairman, said: “This is a very positive set of results and it’s encouraging to see turnover increasing significantly across the majority of areas of the business.
“The reduction in development activity reflects continuing issues facing the property market in general, with reduced demand in Aberdeen producing a ripple effect for the north east.
“Looking forward, the group is seeing positives in improved management in construction, housing and leisure to meet changed market conditions.
“Overall, group profits remained on £4 million before tax, which was a very credible performance in difficult trading conditions.”